Organisational performance and the use of multiple performance measures in an emerging market

Abstract

Purpose

This study is an empirical investigation of the relationship between the use of 41 multiple performance measures (MPMs), including financial performance measures (FPM), non-financial performance measures (NFPMs) and organisational performance (OP) in Libya.

Design/methodology/approach

The results are based on cross-sectional questionnaire survey data from 132 Libyan companies (response rate 61%), which were obtained just before the so-called Arab Spring.

Findings

MPMs are used by both manufacturing and non-manufacturing companies. Libyan business organisations are more likely to use FPMs than NFPMs. However, these companies still rely more heavily on FPMs. The relationships between the use of NFPMs and OP and the use of MPMs and OP are positive and highly significant. The relationship between the use of FPMs and OP is positive but not significant.

Research limitations/implications

The high power distance associated with the conservative, Libyan, Arab context will reinforce the tendency to use FPMs more than NFPMs. This may provide a performance advantage to those organisations which do adopt NFPMs.

Practical implications

Although there may be institutional barriers to the use of NFPMs in Libya, and other emerging markets, these are not insuperable and there is a payoff to their use.

Originality/value

No previous studies of emerging markets, such as the Middle East or North Africa, have looked at the relationship between OP and the adoption of such a large array of MPMs.

Citation

Amhalhal, A., Anchor, J., Papalexi, M. and Dastgir, S. (2022), "Organisational performance and the use of multiple performance measures in an emerging market", International Journal of Quality & Reliability Management, Vol. 39 No. 1, pp. 236-257. https://doi.org/10.1108/IJQRM-04-2019-0107